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Will the debt to income ratio include my spouses debt as well or considering i will pay the mortgage, should i leave her off?

by DrewDavis119CA563 from Huntington Beach, California. Oct 18th 2013 Reply


Joe Metzler (JoeMetzler)
#2 ranked lender in Minnesota - 3,852 contributions

Adding a spouse means adding their debt too. As long as adding her doesn't hurt your qualifications, it is just up to you if you add her or not. Some states (like WISC) are community property states, so if you are married the lender may need to add her debt regardless if she is on the actual loan application or not. IN MN or WI, visit www.JoeMetzler.com for more info

Oct 18th 2013
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,550 contributions

it depends on which loan product your applying for. FHA will consider all obligations for both spouses, even if only one is qualifying for the loan. However only those on the loan can have their income considered.. conventional financing will not add your spouses debt to your ratio's for qualifying.. so long as you can pay your payments with your income, you will not need to include her.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Oct 18th 2013
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Sergio de Alba (downpaymentassistance)
#680 ranked lender in California - 20 contributions

Only if the loan product is FHA, then her debt will be counted.No need on Conventional financing.

Oct 18th 2013
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Dave Metsker (DaveMetsker)
#37 ranked lender in Oregon - 2,317 contributions

If her debt is not joint, and does not show on your credit report, and she does not go on title until after your loan closes, her debt will not count. Only your income and debt will be considered. Do not show her on your application.

Oct 18th 2013
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Blake Kleckner (BlakeK)
#389 ranked lender in California - 257 contributions

There is only 1 benefit to including your wife on the loan and that is if her income is high enough to offset any debt she brings to it, so that your combined debt-to-income ratio is not increased. Unless this can occur, if you can qualify for the loan by yourself, only you should be on it. An important point to consider is her FICO score because when 2 people are on a loan the low middle score of the 2 of them is the one that is used for loan qualifying purposes, which can make a huge difference in a loan's interest rate and cost. There are benchmark levels for FICO scores that can change a loan considerably. They are every 20 points, so a mid-FICO score from 620 to 639, 640 to 659, 660 to 679, 680 to 699, 700 to 719, 720 to 739, 740 to 759, and 760+ can materially alter the structure of a loan from cost and/or interest rate standpoints. Recently, I did a $625,000 refinance for a client whose mid-FICO score was 701 and his wife's was in the 690s. Even though she brought about $75,000 income into the equation, his income qualified them for the loan, consequently, I advised him to be on the loan by himself. Had his wife been on the loan, it would have cost them either almost $5,000 more for it, or resulted in the interest rate being much higher to absorb this cost! Needless to say, he opted to be on the loan by himself. Give me a call 16/7 and I'll be happy to walk you through the process. To learn more about me and our mortgage brokerage, click on the link below. We work exclusively in CA and get loans done fast, typically in less than 30 days, at low interest rates and costs. Representing 46 quality lenders that offer more than 1,000 loan programs, we definitely have something for everybody.

Oct 19th 2013
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Mike Silkworth (msilkw_195_870)
#31 ranked lender in Michigan - 527 contributions

If you are on the loan yourself - your credit score, income and debt will be considered for qualification. If both of you are on the loan the lower credit score, combined income and combined debt will be used for qualification. This is a personal decision and there is no right or wrong way to do it. Most people would limit the mortgage to only one of you if possible.

Oct 19th 2013
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